Bloomberg the Company & Products

Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Jaiprakash Power Drops as Taqa Withdraws From $1.6 Billion Deal

Don't Miss Out —
Follow us on:

July 24 (Bloomberg) -- Jaiprakash Power Ventures Ltd. fell the most in two weeks in Mumbai trading after Abu Dhabi National Energy Co. withdrew from an agreement to buy two hydro-power projects from the Indian company.

The government-controlled utility, known as Taqa, cited a change in its business strategy and priorities, Jaiprakash Power said in a stock exchange statement today. Taqa in March had agreed to take over the two assets for an enterprise value of $1.6 billion along with a Canadian institutional investor and Indian infrastructure finance fund, IDFC Ltd.

Jaiprakash Power fell 7.5 percent to 19.15 rupees in Mumbai today, its biggest drop since July 8. The shares have gained 1.3 percent this year.

The sale of the hydro units would have helped bring down the debt of Jaypee Group by 58 billion rupees ($964 million) according to a company presentation in June on its website.

Taqa will have to pay an unspecified break fee for terminating the agreement, Jaiprakash Power said.

Debt of the Jaiprakash Associates Ltd., the listed holding company of the group, rose to 611 billion rupees in March from 351 billion rupees in March 2010.

Jaypee Group, the ultimate parent group of the Jaiprakash companies, aims to reduce its debt to 450 billion rupees by the end of this fiscal year in March 2015, it said today.

Jaiprakash, the builder of India’s only Formula One race track, sold its Gujarat cement unit to billionaire Kumar Mangalam Birla’s UltraTech Cement Ltd. for 38 billion rupees. It also sold its 74 percent stake in Bokaro Jaypee Cement Ltd., a joint venture with Steel Authority of India Ltd., to Dalmia Bharat Ltd. for 11.5 billion rupees in March.

To contact the reporter on this story: George Smith Alexander in Mumbai at

To contact the editors responsible for this story: Philip Lagerkranser at Dick Schumacher, Karthikeyan Sundaram

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.